Countrywide Steered Homeowners Into Risky Loans, Says Lawsuit; Class Action Sought

In Los Angeles, California, The Associated Press reports:

• Several people who took on home loans from Countrywide Financial Corp. are suing the company, claiming they and other borrowers were steered unnecessarily into taking on risky loans with built-in payment hikes, which ultimately led them to go bankrupt or lose their homes. The seven plaintiffs filed an amended complaint Friday against the Calabasas-based company and several of its subsidiaries. Among the allegations are claims that Countrywide tried to “induce as many borrowers as possible into expensive and dangerous subprime loans, because such loans are the most lucrative for Countrywide.” The lawsuit, which was originally filed in U.S. District Court in Los Angeles in September, seeks unspecified damages and class-action status.

For more, see Countrywide Financial steered borrowers wrong.

Go here, Go here and Go here for more on recent Countrywide problems with consumers.